Local banks rebuffed RIL's $3.2-bn offer: Report

New Delhi: It was a contentious plan to repay overseas bondholders in full that brought what would have been India's biggest retail deal to a grinding halt, media reports said.

Debt-laden Future Retail Ltd's offshore bondholders -- a relatively smaller part of the creditor pool -- were promised 100 per cent payment in the rescue offer from billionaire Mukesh Ambani, according to people with knowledge of the matter. Indian lenders were asked to take a haircut of as much as 66 per cent, the people added, asking not to be identified discussing confidential information, Bloomberg reported.

The unequal treatment led to the move last week, when the local banks rebuffed the $3.2 billion offer from Ambani's conglomerate Reliance Industries Ltd (RIL). announced the purchase plan in August 2020, but struggled to complete the transaction in the face of legal challenges mounted by Amazon.com Inc, which argued it had the first right of refusal contractually.

Bank of India (BoI) and State Bank of India (SBI), the main bankers to Future Retail, didn't immediately respond to emails seeking comment on reasons for voting down the deal. Representatives for Future Group and Reliance also didn't immediately comment.